Joint Venture Finance FAQs
What is a joint venture?
A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing property, residential or refurbishment property development projects.
How do joint ventures work?
- An appraisal is agreed with a fixed profit share to BiG
- The property is bought/transferred into an SPV Company that is 100% owned by BiG
- Simultaneous to the above, BiG and the Joint Venture Partner (JVP) enter into a Contractual Development Agreement which protects each party’s rights
- JVP has a facility over an agreed period to develop the property and sell or refinance the property
- Interest of 8% per annum is applied to the facility
- Upon repayment of the debt, interest and agreed profit share the shares in the SPV are transferred to the JVP
What are the benefits of a joint venture?
- Access to new markets and distribution networks
- Increased capacity
- Sharing of risks and costs with a partner
- Access to greater resources, such as specialised staff, technology and finance
How to get a joint venture loan?
Simply complete our online enquiry form (see below) and one of our experts shall be in touch with you regarding our joint venture loans.